Air France-KLM announces ticket price increases due to fuel volatility
Return economy tickets on long-haul routes rise by €50
Conflict in the Middle East sees ticket prices for long-haul flights rise
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Air France-KLM has announced an increase in fares on long-haul routes due to the oil crisis caused by the war in Iran.
“The current geopolitical situation in the Middle East has led to a significant and sudden increase in fuel prices, particularly kerosene,” Air France-KLM told the AFP on March 12.
The group increased the price of tickets for long-haul flights purchased from March 11 onwards. Note that long-haul journeys typically cover distances of over 3,500km with flight times longer than six hours, such as travelling from Paris to New York.
Return economy class fares have risen by €50 on Air France-KLM flights.
This decision follows similar recent announcements from airlines including Air India, Air New Zealand, Cathay Pacific, Hong Kong Airlines, SAS and Quantas.
Transavia, owned by the Air France-KLM group, has not yet decided whether to increase its fares.
Hedging strategies to mitigate costs
Fuel is a major expense for airlines, with aviation fuel prices usually moving in tandem with oil prices, however they have doubled since the start of 2026.
The average global price of aviation fuel reached nearly $168 a barrel on March 11, according to the data firm S&P Global’s Platts benchmark index.
Many airlines aim to limit the effects of rises in the prices of fuel via a hedging strategy of agreeing to buy fuel at a fixed price several months in advance.
Air France-KLM introduced a new rolling fuel hedging policy this year by securing 70% of its supplies for the current and next quarters and 60% for the quarter thereafter.
Petrol prices also increasing
France saw a surge in fuel sales at the start of this month as drivers rushed to purchase in anticipation of rising petrol prices.
This led to shortages of some fuel types, and a number of stations closed temporarily due to high demand.
Diesel prices have now reached an average of €2 per litre - a 26 cent increase in just over a week.
Petrol prices have remained lower, but in more than 70 service stations across France SP95 fuel also reached the €2 per litre mark.
The government has highlighted its fuel price comparison service to help drivers identify where best to refuel their vehicles.
